ENFORCEMENT DECREE OF THE ACT ON SPECIAL-PURPOSE COMPANIES FOR MORTGAGE-BACKED BONDS
Presidential Decree No. 16410, jun. 30, 1999
Amended by Presidential Decree No. 16770, Apr. 1, 2000
Presidential Decree No. 18312, Mar. 17, 2004
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20947, Jul. 29, 2008
| Article 2 (Equity Capital) |
| 1. | That the core capital shall be the real net asset of the financial institution, such as capital, retained profit, etc., which has the characteristic of permanency; |
| 2. | That the supplementary capital shall be the capital having the characteristic corresponding to subparagraph 1, such as posterior claim, etc., which is able to make up for the loss arising from business activities; and |
| 3. | That those, such as the right of business, treasury stocks, etc. of the special purpose company for mortgage-backed bonds (hereinafter referred to as "mortgage securitization company"), which do not contribute to the fullness of capital, shall not be included in the core capital and supplementary capital. |
| Article 3 (Capital Ratio, etc.) |
| (1) | The term "capital ratio" in
Article 3 (2) 3 of the Act means the ratio gained by dividing equity capital by risk-weighted asset in the consolidated balance sheet.
|
| Article 4 (Mortgage Securitization Plan) |
The term "other matters prescribed by Presidential Decree" in
Article 4 (2) 7 means those in the following subparagraphs:
| 1. | Matters regarding the financial institution that has transferred mortgages; |
| 2. | Matters regarding the protection of investors of mortgage-backed bonds or mortgage-backed securities; and |
| 3. | Where the mortgage securitization company intends to borrow and operate money in connection with the mortgage securitization concerned, such plan. |
| Article 5 (Registration of Transfer, etc. of Mortgage) |
| (1) | Where a mortgage securitization company that has registered the fact of transfer, etc. of mortgages pursuant to the provisions of
Article 5 (1) of the Act requests for the issue of a document verifying the fact of registration, the Financial Services Commission shall issue it without delay.
<Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) | The mortgage securitization company shall preserve and manage the contract, certificate of registration, certificate of completion of registration, and other evidencing documents regarding the transfer, etc. of mortgage pursuant to the provisions of
Article 5 (4) of the Act by designating a person to take charge thereof.
|
| (3) | In designating a person to take charge pursuant to the provisions of paragraph (2), the mortgage securitization company shall designate one who is not the financial institution that has transferred the mortgage concerned to itself:
Provided, That the same shall not apply to cases where the financial institution that has transferred the mortgage concerned preserves and manages the original, and a person other than the financial institution preserves and manages copies (including those electronically recorded) and makes them available for the Financial Services Commission or investors.
<Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
[This Article Wholly Amended by Presidential Decree No. 16770, Apr. 1, 2000]
| Article 6 (Acquisition Cost of Mortgage-Backed Securities) |
Where a mortgage securitization company acquires mortgage-backed securities with an asset other than the one liable for mortgage securitization pursuant to the provisions of
Article 12 (7) of the Act, the acquisition cost shall be by the market price available in the securities exchange pursuant to the
Financial Investment Services and Capital Markets Act (hereafter referred to as "securities exchange" in this Article):
Provided, That the relevant mortgage-backed securities have not been listed in the securities exchange, it shall be the amount obtained by dividing the total amount of the mortgage (referring to the amount on the grounds of the amount evaluated at the time when the mortgage-backed securities have been acquired) which is the grounds for the issue of mortgage-backed securities by the total number (excluding those that have been already repaid at the time when the mortgage-backed security has been purchased) of the mortgage-backed securities.
<Amended by Presidential Decree No. 20947, Jul. 29, 2008> [This Article Wholly Amended by Presidential Decree No. 16770, Apr. 1, 2000]
| Article 7 (Standards for Management Guidance) |
The standards for management guidance that the Financial Services Commission lays down pursuant to the provisions of
Article 16 (2) of the Act shall include the matters in the following subparagraphs:
<Amended by Presidential Decree No. 20653, Feb. 29, 2008> | 1. | Matters regarding the appropriateness of capital; |
| 2. | Matters regarding the soundness of asset; |
| 3. | Matters regarding the securing of liquidity; and |
| 4. | Other matters recognized as necessary for the securing of soundness of management. |
| Article 8 (Fines for Negligence) |
| (1) | When the Financial Services Commission imposes a fine for negligence pursuant to the provisions of
Article 26 (2) of the Act, it shall notify the person liable for the disposition of a fine for negligence by stating clearly the fact of violation, amount of a fine for negligence, etc. in writing to complete the payment thereof after the relevant violation is investigated and confirmed. In such cases, the methods, period, etc. of raising objection thereto shall be also stated in a demand for payment.
<Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
| (2) | When the Financial Services Commission intends to impose a fine for negligence pursuant to the provisions of paragraph (1), it shall give the person liable for the disposition of imposition of a fine for negligence to express his/her opinion orally or in writing (including electronic document) by specifying a period of ten days or more. In such cases, it shall be deemed that there is no opinion when there is no statement within the specified period of time.
<Amended by Presidential Decree No. 18312, Mar. 17, 2004; Presidential Decree No. 20653, Feb. 29, 2008> |
| (3) | In determining the amount of a fine for negligence, the Financial Services Commission shall consider the motive, result, etc. of the relevant violation.
<Amended by Presidential Decree No. 20653, Feb. 29, 2008> |
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
ADDENDUM<Presidential Decree No. 16770, Apr. 1, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM<Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA<Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation:
Provided, That of Presidential Decree which is amended under Article 2 of the Addenda, the amended part of Presidential Decree promulgated prior to this Decree enters into force, but its enforcement date has not arrived, shall enter into force on the relevant Presidential Decree, respectively.
Article 2 Omitted.
ADDENDA<Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. <
Proviso Omitted.>
Articles 2 through 28 Omitted.